Power puff

24 September 2020 By Ed Cropley Follow @edwardcropley

The 96 bln euro engineer’s energy carve-out is a curious mix of wind and hydrocarbons. Worth perhaps 17 bln euros, it will barely dent Siemens’ chunky conglomerate discount. For that, CEO-in-waiting Roland Busch needs to take a bigger knife to the remaining corporate sprawl.

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Siemens plans to spin off its Siemens Energy power division on Sept. 28, incorporating its gas power-generation and electricity transmission businesses with its 67% stake in listed wind-energy firm Siemens Gamesa.

Siemens will give 55% of Siemens Energy shares to existing investors. Siemens’ pension fund will take 9.9% and Siemens will retain the remaining 35.1%. Siemens plans to sell down that stake, but keep its holding above 25%, allowing it to block major corporate decisions at general meetings.

Siemens expects Siemens Energy to be valued at significantly more than 17 billion euros, Reuters reported on Sept. 22, citing a source close to the company. Early trading was likely to be volatile, the source said.

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